Dollar falls with US rate cut bets in focus

US Dollar fell today as investors focused on expectations for the Federal Reserve to cut interest rate.

US government data showed that the producer price index rose by 0.1% last month.

Federal Reserve Chairman Jerome Powell gave his semi-annual testimony before Congress on Wednesday and Thursday, which has boosted speculations about a near interest rate cut.

This comes after he acknowledged the existence of pressure on the US economy and uncertainty factors represented by the slowing global economic growth and the trade disputes.

The markets viewed this as a clear hint of an interest rate cuts, as the central bank member James Pollard said he would vote for a rate cut at the July meeting.

In terms of trade, by 18:00 GMT, the dollar index (against a number of major currencies) fell by 0.2% to 96.8 points, reaching a high of 97.1 points and a low of 96.8 points.